June 30 deadline for digital banking submission to filter serious applicants, says KPMG
The June 30 deadline for digital banking licenses submission could be an attempt by Bank Negara Malaysia to separate serious applicants from the crowd, said KPMG in Malaysia.
Its Financial Services Head, Adrian Lee said the focus to fulfil Bank Negara's mandate for financial inclusion would be a common starting point for applicants as banks and non-bank institutions vying for the licenses.
The challenge for applicants to demonstrate how their digital bank model will address the financial inclusion mandate also needs to be highlighted. From a purely commercial sense, there is a delicate balancing act between improving financial inclusion and business sustainability.
KPMG’s Financial Risk Management Head and Digital Banking Leader, Yeoh Xin Yi said the key was for digital banks to unravel the underlying reasons traditional financial institutions are prevented from serving certain customer segments.
Read the full article as published by New Straits Times.
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